What are some faith-based investing principles and tools I can use to grow my investments and maintain my faith?

Ralph Estep Jr.:
00:00

Can you really align your investments with your faith? Or is that just something people say? Stick around today to find out.

Ralph Estep Jr.:
00:14

Hey everyone, Ralph here. Welcome back to the Ask Ralph Show where we tackle your financial questions through the lens of our Christian faith. Ever feel like the worlds of money and faith are at odds? I'm here to bridge that gap, offering practical advice and spiritual guidance for a more abundant life both inside and out.

Ralph Estep Jr.:
00:33

You know yesterday we dug into the trenches of bad credit and how to rebuild it. It was a tough topic. I know some of us have been there. But remember, God's grace is bigger than any financial misstep. We can always start fresh, and I'm here to walk that journey with you. So if you missed it, just go to askgrafpodcast.com. Speaking of journeys, today's episode is a big one. We're diving into the world of Faith-Based Investing. Now I know what you might be thinking, "Ralph, can I really grow my money and stay true to my beliefs?" Well, that's exactly what we're going to unpack today. So stick around because we've got a lot to cover.

Ralph Estep Jr.:
01:15

We got a message from one of our listeners, let's see what's on their mind. "Dear Ralph, I'm so glad I found your podcast. I want to invest my savings in a way that aligns with my faith but I'm overwhelmed. There are so many options out there, and frankly, some seem a little too good to be true. How can I find investments that are both profitable and morally sound? And how can I avoid being scammed targeting Christians like me?" This was signed Trevor from San Diego, California.

Ralph Estep Jr.:
01:46

Wow, that's a powerful question, Trevor. And I know it resonates with many of you. So Trevor, today we're tackling a question that's close to my heart as well as yours, and that's Faith-Based Investing. It's a topic that often sparks confusion and even fear. Let me assure you, aligning your finances with your faith is not impossible. And it's incredibly empowering.

Ralph Estep Jr.:
02:14

Before we dive in, let's take a moment to center ourselves on Scripture. We're going to look at Proverbs chapter three, verses five and six, which remind us: "Trust in the Lord with all your heart and lean not on your own understanding. In all your ways submit to Him, and He will make your paths straight." These words are a guiding light for us, especially when navigating the complex world of investing. It's not about chasing the highest returns but seeking God's wisdom in every financial decision that we make.

Ralph Estep Jr.:
02:53

Now, back to Trevor's question: you want to know how to find investments that are both profitable and morally sound? It's a valid concern. And here's the good news. You're not alone in this search, Trevor. There are countless resources and strategies available to help you build a portfolio that reflects your values. So first and foremost, let's define what we mean by Faith-Based Investing. Trevor, it's not about slapping a Christian label on a mutual fund. It's about intentionally aligning your investments with your beliefs. So how do we do that? How do we find those investments that align with our beliefs? Trevor, I've put together a few actionable steps.

Ralph Estep Jr.:
03:35

Number one: define your values. Ask yourself this, Trevor: what are your non-negotiables? Are there specific industries you want to support? Or that you want to avoid? Maybe you're passionate about environmental sustainability. Or maybe you want to steer clear of companies involved in activities that contradict your beliefs. Clearly defining your values is the foundation of Faith-Based Investing.

Ralph Estep Jr.:
04:03

Let's move on to number two: research, research, research. Trevor, this is the time to do your homework. Don't just take somebody's word for it, even my word. Don't just take my word for it. Dig deep into the companies you're considering. Look at their mission statements, look at their track records, and look at how they treat their employees and the environment. There are fantastic online resources like the Evangelical Council for Financial Accountability (ECFA). They provide ratings and information on companies' ethical practices. You'll find them at www.ecfa.org, and I'll put that in the show notes.

Ralph Estep Jr.:
04:45

Let's look at number three: explore faith-based funds. Yes, Trevor, they do exist. There are mutual funds and ETFs specifically designed to invest in companies that align with your Christian values. These funds typically avoid industries like alcohol, tobacco, and gambling while prioritizing companies with strong ethical and social responsibility records. That's why I spoke about clearly defining your values so you can check on these funds.

Ralph Estep Jr.:
05:14

And finally, number four: seek wise counsel. As you know, Trevor, investing can be complex and you don't have to go it alone. Talk to a financial advisor who shares your faith and understands your desire to invest responsibly. They can provide personalized guidance and help you navigate the complexities of the market.

Ralph Estep Jr.:
05:35

Now, Trevor, let's address the elephant in the room that you talked about: scams. Unfortunately, there are individuals and organizations out there looking to exploit people of faith. It's just a fact. I've seen so many of these. All you have to do is do a simple Google search, and you'll see pages after pages promising to provide you with faith-based investment ideas. So here are some red flags to watch out for, Trevor. Watch out for guaranteed high returns. Like you said in your message, if it sounds too good to be true, it probably is. Be wary of promises of unrealistic returns, especially in the short term. Watch out for high-pressure tactics, Trevor.

Ralph Estep Jr.:
06:14

You've got to be aware of anyone pressuring you to invest quickly without giving you time to do your research. A reputable advisor will not only provide you with great advice, they'll also give you tools and time to do your own research and make the decision that's best for you. That's what they're supposed to be doing—they're supposed to be advising you on what's best for you. Watch out for those programs that have a lack of transparency. Legitimate investment opportunities should be transparent about their fees, about the risks, and about the investment strategies. Trevor, if something feels off, if you're not getting straight answers, walk away. Use that Christian discernment you've been given. And this is a big one: watch out for spiritual manipulation. This one's huge. Be cautious of anyone using scripture or religious language to pressure you into an investment, Trevor. Remember, God gave us wisdom and discernment.

Ralph Estep Jr.:
07:08

Time to trust your gut instinct. Look, Trevor, I know this might seem overwhelming. But I want to encourage you. Faith-Based Investing is not about limiting your options, not in the least. It's about aligning your money with your values. It's about being a good steward of the resources God has entrusted to you. And remember this, Trevor: you don't have to be a financial expert to do this. Start by taking small steps, educating yourself, and seeking wise counsel from those trusted folks around you.

Ralph Estep Jr.:
07:39

I want to share a personal story that really brought this home for me. A few years ago, a member of my church approached me about a quote, "amazing investment opportunity."

Ralph Estep Jr.:
07:47

He was charismatic, passionate, and even quoted Scripture to support his claims. He promised incredibly high returns in a short amount of time, all while supporting what he called a worthy Christian cause. I consider myself a pretty financially savvy guy. I've got over 30 years of experience in finance, but something about his pitch just felt off.

Ralph Estep Jr.:
08:08

So I did my due diligence. I researched the company, dug into their financials, and even spoke to a financial advisor I trusted. Guess what? It turned out to be a classic Ponzi scheme. The Christian cause was a front, and many people, including some from our church, lost their life savings. That experience was a painful but valuable lesson. It taught me the importance of due diligence, seeking wise counsel, and trusting my instincts. But it also solidified my belief that Faith-Based Investing is possible and can be incredibly rewarding. You see, it's not just about avoiding bad companies. It's about actively seeking out companies that are making a positive impact on the world. Listen, I don't give specific investment advice, but I do know there are great advisors out there with a heart for Jesus who will absolutely help you find this alignment with your core values. So as I wrap up today's episode, I want to leave you with this: You have the power to align your investments with your faith. Don't be afraid to ask questions and seek guidance. And most of all, trust your instincts and be aware of anything that feels too good to be true. Remember this: investing is a marathon.

Ralph Estep Jr.:
09:24

It's not a sprint. Like I've said that a time or two. But by taking a thoughtful and prayerful approach, you can grow your wealth, honor God, and make a positive impact on the world. And don't forget, tomorrow we'll tackle another important topic: how to make sure you're not filing a false tax return with the IRS. You don't want to miss that one.

Ralph Estep Jr.:
09:47

Remember to visit our website at askralphpodcast.com to join our email list and receive a free copy of my book. This is it right here: "Mastering Your Finances." It's 47 pages packed with even more tips and strategies to help you achieve financial freedom God's way. And do me a favor, don't forget to share this episode with anyone who might benefit from it. So as I always say, until next time, stay financially savvy. And God bless you.

Ralph Estep Jr.:
10:12

Thank you, Trevor, for your question.